Zumiez Inc (NASDAQ:ZUMZ), the specialty apparel retailer, on Thursday reported better-than-expected results including an increase in revenue and profit thanks to its strategy of full-price, full-margin sales.
The Lynwood, Washington-based company announced its fiscal first-quarter earnings after the bell for the 13-week period ending May 4.
Shares of Zumiez jumped 16.3% in after-market trading to $21.71 a share, a gain of $3.37 from its closing price.
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The company generated total revenue of $212.9 million during the quarter, an increase of 3.2% from the year-ago period.
On the income front, Zumiez swung to a profit of $800,000, or $0.03 per share, from a net loss of $2.6 million, or $0.10 per share, during fiscal 1Q 2018. Analysts had estimated a loss of around $0.09 per share.
“We delivered better than expected results to start the year due to strong performance in the last two months of the first quarter,” said CEO Rick Brooks.
“Our performance reflects a continuation of our strategy focusing on full-price, full-margin selling and leveraging our broad assortment to service the customer. Our customer-focused execution continues to drive comparable sales gains and margin expansion and the operating model we have built around a singular cost structure continues to generate increased profitability.”
Brooks expressed confidence that Zumiez could capture additional market share in the near and long term.
The company also updated its 2Q guidance to target sales between $220-224 million and a net income per share in the range of $0.14-0.20.
Zumiez operates 707 stores, including 606 in the US, 50 in Canada, 42 in Europe and nine in Australia as well as the ecommerce sites zumiez.com, zumiez.ca, blue-tomato.com and fasttimes.com.au.
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